U.S. Sen. John Hoeven (R-ND) is pressing forward with his “Crack the Code 2.0” initiative, recently telling federal officials it could significantly increase oil production in the Bakken oil field while extending the lifespan of North Dakota’s coal-fired power plants.
During an April 29 hearing held by the U.S. Senate Energy and Natural Resources Committee on the president’s fiscal year 2027 budget request for the U.S. Department of the Interior, Sen. Hoeven discussed the proposal with Interior Secretary Doug Burgum, focusing on expanding enhanced oil recovery (EOR) using carbon dioxide captured from coal plants.
Sen. Hoeven said he is working to finalize $36 million in funding from the U.S. Department of Energy for a $157 million large-scale demonstration project. The effort also includes $76 million in private investment and $45 million from the state of North Dakota.
“We believe that this project will double the life of our coal fired electric industry, double the life and probably more than double the amount of oil and gas we produce,” the lawmaker testified.
He added that the project has “produced about 6 billion barrels of oil… but that number is going down… we need to use enhanced oil recovery to start increasing that number… we only produce about 10 to 12 percent of the oil that’s in the shale… so we’ve put together… a large scale demonstration project… to take CO2 from our coal fired electric plants and to not only double their life, but to double production in the Bakken.”
Burgum signaled support for the concept, pointing to both production and emissions benefits.
“I would support it… there’s a big opportunity here for not only to increase production, but to take care of the concerns that some have about emissions,” said Burgum during the hearing. “Your Crack the Code 2.0 does both of those things simultaneously… it’s important, because… when we find ourselves dependent on those that are waging war against us… the U.S. is in a position today to sell energy to our friends and allies, so they don’t have to buy it from people that are waging war and terrorism against us.”
Sen. Hoeven added that the initiative is also backed by a policy he secured in the enacted One Big Beautiful Bill aimed at aligning the federal 45Q tax credit to incentivize the use of captured carbon dioxide for enhanced oil recovery.
Supporters say the approach could provide coal producers with a new revenue stream by selling captured CO2 to oil producers, while strengthening long-term incentives to expand EOR in the Bakken.